Association of Licensed Automobile Manufacturers

In response to his distress, other independent automobile makers formed a group called the Manufacturers Mutual Association to breathe new life into Winton's legal defense.

Formed by Henry Bourne Joy of Packard and Frederic L. Smith of Olds, the two entrepreneurs used their position to threaten the Electric Vehicle Company.

By 1903, the organization had officially become the Association of Licensed Automobile Manufacturers, and had secured favorable rights from the Electric Vehicle Company.

The ALAM gained from the agreement, giving them control over the entire automobile industry for a relatively low cost.

The group negotiated a 1.25% royalty on all cars produced, one-half of one percent of which went directly into the ALAM legal and operations funds.

Applications for ALAM membership and a Selden license were granted only by the unanimous decision of a five-member executive board.